Mr. Janez Poto?nik:

Thank God I come from an even smaller country. The Deputy asked four basic questions and I will try to deal with them as quickly as possible.

On the semester process, some years ago what the governments were doing in the area of the economy was predominantly linked to budgetary considerations. As the crisis has unfolded, we have learned that we must align our economic policies better and strengthen the governance of such policies at EU level. This is especially important for the countries which are connected by the same currency. Ultimately, what the Government here and my Government do, influences what happens in the other countries that are members of the euro. This is well understood by everybody and that is why the semester process was created. We are no longer looking only at budgetary issues, we also consider those which relate to economic governance.

In the context of economic governance issues, each year we prepare an annual growth survey and the Commission addresses those developments. On the basis of this, we draw up what we term "country-specific" recommendations in respect of individual member states. We identify a few issues with regard to particular countries in respect of which specific challenges must be addressed. In order to make recommendations of this kind, one must carry out a great deal of analytical work. We would not like to base our proposals on something about which we were not sure. What we recommend must be consistent with our overall approach. The recommendations are then referred to the European Council and the member states for discussion and they are then either adopted or not supported. If a recommendation is adopted, we are given a mandate to monitor progress in respect of it. In other words, we must monitor whether recommendations adopted by the Council are delivered upon by the relevant member states.

In this way we have created a more coherent economic policy-making process. This is the semester process. My wish is that we include in this process more of the things that are connected to the sustainable aspect of economic development. I refer, for example, to proposals such as shifting taxes from labour to environmental pollution - this is not a problem for Ireland because it is already taking important steps - or focusing on the potential that exists in the context of waste management. This could give rise to good job creation prospects and Ireland still has huge opportunities in the context of moving away from landfill. In the context of the European Union, Ireland is somewhere in the middle and this means that growth and jobs potential still exist here.

Next year we will try to focus more on removing subsidies that are environmentally harmful. Again, quite a thorough analysis will be required in this regard and we will be obliged to go as far as making recommendations in respect of individual member states. Water management and green public procurement could also form part of this in the future. It is my intention to ensure that in the context of the issues which are connected to growth and jobs, we will focus not only on quantity but also on quality, particularly as this represents a kind of integration of the policies.

The Deputy inquired with regard to the practicality of resource efficiency and what we are doing in this area. One of the very practical steps in this regard is that which I have already explained, namely, the semester process. Through this we are trying not only to deal with environment Ministers but also with Prime Ministers. After all, it is the latter who are leading the way in terms of policies. Such policies should be part of the everlasting triangle of economic, social and environmental sustainability. It is these which hold the entire pillar together.

We have very practical proposals and we will come forward with some which relate to the areas where the resources influence is at its highest. As a result, there will be a very holistic approach to the food cycle and to the area of construction. We are currently working on eco-design and eco-labelling. This involves a product approach, a consumer approach and a producer approach. In other words, designing products to meet certain standards in order that they will use less energy and water and fewer raw materials. They will also be designed in a way which will ensure that they can be reused and recycled. If a product is properly designed, then it is much easier to complete the economic circle.

Labelling is important for consumers and we must ensure that labels are capable of being understood. We are currently working on a green market for green products and services. We are developing methodologies in order that we might have a more unified view on what constitutes a green product or a green company. There has been quite a proliferation of such products and companies. A market analysis that was carried out indicates that 48% of consumers no longer believe the claims made about certain green products. This is a cause of concern. We would like to re-establish people's trust and that is why we are working on our proposal in this regard. I could speak at length about this matter because we are working on many different fronts. Everything to which I have referred is in the pipeline.

I will be brief in my comments on GM crops. Basically, this matter does not relate to my portfolio. Under the previous mandate, it was linked to the environment portfolio but now it comes under health. I would need to consider where matters stand at this stage. Members know exactly what the problem was in this regard, namely, that member states overruled whatever proposals the Commission put forward. These proposals where then put back on the table again and we found ourselves standing still to some degree. We are currently trying to progress matters and to arrive at a solution to this problem. I would be very keen to ensure that the environmental and health protection aspects relating to this issue will be the subject of proper consideration.

On fossil fuels and shale gas, we are behind the United States in the context of exploration. In this instance, that is not so bad because we can learn from the experience and knowledge which the latter is developing step by step. We have not yet had major exploration in respect of shale gas for commercial purposes. We expect that such exploration will occur within two to three years. To be frank, we do not yet have a clear view on what would be the reserves of such gas in various countries. Our work in this regard is ongoing. Economic activity in areas of this nature can only ever be possible if there is public trust. At present, the positions of the various member states in respect of this matter are different. For example, some member states have banned shale gas exploration, some are reconsidering their position in respect of it and some have already granted licences.

It is important that we should seek to establish the public trust to which I refer. Without that trust, everything would be hampered. On one hand, we have the interests of those who want to have a predictable environment in which to work, while, on the other, we must consider the issues of people's health and environmental protection. All of these matters will need to be taken into consideration. We published three studies relating to this matter in September. One of these examines the position from the angle of energy and economic potential.

Another was from the angle of the influence on climate change and the third was from the angle of the environment. One conclusion which I can easily say at this moment is that the studies are showing us that the consequences of unconventional gas exploration are stronger on the environment and health than of conventional gas exploration. What we are now doing is continuing with the impact assessment because we have decided in the Commission that in the course of the next year we will come with a formal proposal on the risk management of unconventional shale gas exploration. That is important because in that way we will try to address both of those specific angles; on the one hand the issues that concern the predictability of future business development and on the other health and environmental considerations and building the trust of society for such potential economic activity in the future.